Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2013 Earnings Presentation
22 slides from Western Alliance Bancorporation's earnings presentation, Jul 18, 2013
Slide 1: Western Alliance Bancorporation 2nd Quarter Earnings Call
(NYSE: WAL) July 19, 2013 Western Alliance Bancorporation 2nd Quarter Earnings Call
Slide 2: Q2 2013 Financial Performance
2 Q2 2013 Financial Performance o Strong Income Growth – Net income of $34.0 million, up from $21.0 million in Q1 2013 and $14.0 million in Q2 2012 – Net income of $27.7 million, excluding $10.0 million bargain purchase gain, $1.1 million OREO gain, and $3.3 million loss on TRUPS revaluation (exclud
Slide 3: Centennial Bank Acquisition
3 Centennial Bank Acquisition o 17 FTE’s at close, now 7 o Conversion scheduled for July 26, 2013 o Acquired loans of $351 million on April 30; balance remaining as of June 30 is $343 million o Acquired deposits of $337 million on April 30; balance remaining as of June 30 is $298 million o Net acqui
Slide 4: Loan Growth and Portfolio Composition
4 $1,574 $1,756 $1,948 $2,085 $2,174 $1,310 $1,331 $1,397 $1,414 $1,550 $1,434 $1,401 $1,500 $1,532 $1,833 $486 $465 $471 $443 $438 $361 $380 $394 $381 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Loan Growth and Portfolio Composition $ in millions $1.25 Billion Year Over Year Growth Commercial Industrial CRE, Own
Slide 5: Deposit Growth and Composition
5 Deposit Growth and Composition $ in millions $1.0 Billion Year Over Year Growth Savings & MMDA NOW CDs Non-Int Bearing DDA $1,842 $1,841 $1,933 $1,930 $1,920 $2,438 $2,541 $2,574 $2,827 $2,945 $541 $515 $582 $620 $631 $1,180 $1,265 $1,366 $1,358 $1,505 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $6,001 $6,162 $
Slide 6: Adversely Graded Loans and Non-Performing Assets
6 $77 $78 $74 $75 $69 $105 $123 $106 $94 $82 $135 $116 $97 $84 $71 $92 $100 $98 $122 $115 Q2‐12 Q3‐12 Q4‐12 Q1‐13 Q2‐13 $409 $417 $375 $375 $337 Adversely Graded Loans and Non-Performing Assets $ in millions Q2‐12 Q3‐12 Q4‐12 Q1‐13 Q2‐13 OREO Non-Performing Loans Classified Accruing Loans Special Me
Slide 7: Consolidated Balance Sheet Highlights
7 Consolidated Balance Sheet $ in millions Highlights • Assets grew 20% or $1,430 million during the past year • Shareholders’ Equity grew 19.0% or $128 million during the same period • Tangible Book Value/Share grew over 20% from $6.01 to $7.26 • OCI fell from an unrealized net gain of $7.2 million
Slide 8: Consolidated Financial Results Highlights
8 Consolidated Financial Results Highlights • Revenue growth of 13.8% from same quarter last year compared to expense growth of 5.8% • EPS increased $0.06 from Q1 2013 to $0.30, excluding $0.10 for net acquisition gain, $0.01 for the OREO gain, and $0.02 for the TRUPS valuation loss $ in millions ex
Slide 9: EPS Walkforward Q1 2013 – Q2 2013
9 EPS Walkforward Q1 2013 – Q2 2013 Components of Changes in Earnings Per Share $0.05 ($0.01) $0.02 $0.30 ($0.02) $0.01 $0.10 $0.39 Q1 2013 EPS Net Interest Income Provision Expense OREO Gains Q2 2013 EPS Operating Expense TRUPS Valuation Losses Net Acquisition Gain $0.24 Q2 2013 EPS Excluding Certa
Slide 10: Net Interest Income and NIM
10 $27.5 $27.7 $30.1 $29.3 $30.7 4.32% 4.28% 4.50% 4.16% 4.25% 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% 5.2% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $24.1 $24.4 $26.7 $26.6 $32.5 4.46% 4.50% 4.58% 4.42% 4.74% $15 $19 $23 $27 $31 $35 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $21.4 $21.8 $22.2 $20.8 $20.6 5.16% 5.11% 5.07% 4.72% 4.64
Slide 11: WAL Consolidated Net Interest Drivers
11 $5.2 $5.3 $5.7 $5.9 $6.4 5.50% 5.42% 5.60% 5.42% 5.40% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $179 $308 $205 $556 $383 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $1.4 $1.3 $1.2 $1.3 $1.3 3.15% 3.17% 3.25% 3.21% 2.92% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $4.2 $4.3 $4.5 $4.8 $5.1 0.40% 0.38% 0.35% 0.32% 0.32% Q2-12 Q3-12 Q4-12
Slide 12: Operating Expense and Efficiency Ratio
12 Operating Expense and Efficiency Ratio $ in millions $17.4 $16.7 $16.8 $17.4 $17.3 54.4% 51.9% 48.0% 50.5% 47.9% 40% 45% 50% 55% 60% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $11.7 $11.9 $13.1 $13.1 $14.7 44.2% 44.7% 45.2% 45.1% 42.0% $6 $8 $10 $12 $14 $16 $18 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $11.1 $11.1 $11.1
Slide 13: Pre-Tax Pre-Provision Income and ROA
13 Pre-Tax Pre-Provision Income and ROA $ in millions $13.7 $14.2 $16.7 $15.3 $17.3 1.92% 1.93% 2.19% 1.92% 2.12% 1.5% 2.0% 2.5% 3.0% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $14.0 $14.1 $15.2 $15.3 $19.5 2.41% 2.38% 2.38% 2.36% 2.62% $8 $10 $12 $14 $16 $18 $20 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $11.4 $11.8 $12.2 $
Slide 14: Net Income and ROA
14 Net Income and ROA $ in millions $3.8 $5.8 $7.6 $10.7 $12.7 0.53% 0.79% 0.99% 1.34% 1.55% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $7.8 $8.8 $10.4 $8.5 $12.0 1.34% 1.47% 1.63% 1.31% 1.61% $0 $5 $10 $15 $20 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 $5.1 $6.4 $5.2 $6.4 $5.7 1.13% 1.30%
Slide 15: Composition of Pass Credits and Loan Grades
15 Composition of Pass Credits and Loan Grades 6/30/12 High Pass $1,211 Pass $3,624 Special Mention 92 Classified $238 Wtd Grade 4.22 Total Loans $5,165 million Pass Credits and Loan Grades Q2 2012 – Q2 2013 Composition of Pass Credits and Loan Grades 6/30/13 High Pass $1,707 Pass $4,321 Special Men
Slide 16: Net Charge-Offs and Provision
16 Net Charge-Offs and Provision Q2 2012 – Q2 2013 $13.9 $9.0 $13.5 $2.7 1.11% 0.70% 0.99% 0.38% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Affinity Card Mark to Fair Value ($2.6 mil) WAB TPB BON Charge-Off Rate 0.17% $0.7 $3.0 $4.2 $2.2 $3.0 $10.0 $5.9 $7.3 $3.2 $0.5 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Other Allocate
Slide 17: Effect of No Reserve for Acquired Loans
17 Effect of No Reserve for Acquired Loans Reported Less: Acquired Loans* Adjusted Allowance for Loan Losses 96 $ 96 $ Total Loans 6,412 $ 421 $ 5,991 $ Ratio 1.50% 1.61% Effect of Acquired Loans Booked at Discount Reported Plus: Credit Discount* Adjusted Allowance for Loan Losses 96 $ 45 $ 141 $ To
Slide 18: Charge-Offs By Vintage and Remaining Balances
18 Charge-Offs By Vintage and Remaining Balances $ in millions $4 $15 $18 $75 $140 $270 $272 $418 $411 $351 $466 $946 $1,579 $1,063 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $2.4 $2.4 $2.1 $5.3 $25.9 $66.2 $125.6 $96.4 $63.7 $4.4 $2.9 $0.4 $0.2 $0.0 2000 2001 2002 2003 20
Slide 19: Regulatory Capital Q2 2012 – Q2 2013
19 Regulatory Capital Q2 2012 – Q2 2013 $6.01 $6.35 $6.84 $7.04 $7.26 11.3% 11.6% 12.0% 13.9% 16.5% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 TBV/Share ROTCE Tangible Book Value/Share and ROTCE 12.3% 12.3% 12.6% 12.6% 12.0% 8.0% 8.1% 8.6% 8.6% 8.3% 11.0% 11.0% 11.3% 11.3% 10.8% 9.7% 9.7% 10.1% 10.1% 9.9% Q2-12
Slide 20: Outlook 3rd Quarter 2013
20 Outlook 3rd Quarter 2013 o Balance Sheet Growth o Net Interest Margin o Efficiency Ratio o Asset Quality o Acquisition Integration
Slide 21: Question & Answer
21 Question & Answer WAL Q2 2013 Earnings Presentation
Slide 22: Forward Looking Statements
22 Forward Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements co
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